Entrepreneurship in Lviv: residents’ perspective

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29.10.2019

Entrepreneurship in Lviv: residents’ perspective

According to a survey conducted by Rating Group during October 4–14, 2019 among residents of Lviv, 41% believe the city is developing in the right direction, 36% disagree, and 23% could not answer. Regarding the country’s direction, 31% see it as right, 43% as wrong, and 26% were undecided. Over time, positive assessments of the country’s direction increased, while assessments of the city’s direction declined.
Among city opportunities, respondents rated leisure and recreation highest (68% say Lviv offers everything or almost everything for this). 52% believe the city provides good opportunities to find a job. Views on safety are split: about 40% consider the city safe, 25% see safety as average, and 25% perceive it as rather unsafe. Perceptions of entrepreneurial opportunities are similarly mixed: one-third see good opportunities, one-fifth rate them as average, one-quarter see no opportunities, and one-quarter could not answer.
Younger and wealthier residents rate leisure, jobs, and safety more positively. Regarding entrepreneurship, many older and poorer respondents could not give a clear answer (around 40%). Middle-aged and middle-income groups are more critical. Young, affluent residents and current entrepreneurs tend to rate business opportunities as high.
The top city problems are utility costs (46%), traffic congestion (42%), and drug and alcohol abuse (35%). About 25% cite poor road conditions, lack of parking, and development of parks/green areas. 20–17% mention illegal construction, shortage of kindergarten places, poor transport condition, and stray animals. 10–12% point to poor sidewalks, transport fares, low medical professionalism, and rising crime; other issues are mentioned by fewer than 10%.
Satisfaction with city governance and services:
– Mayor: 51% satisfied, 41% dissatisfied
– Municipal improvement services: 44% / 43%
– City council: 40% / 41%
– Public transport: 31% / 60%
– коммунальні services: 27% / 65%
Trust in business groups: highest trust is in small and medium entrepreneurs (over 60%), lowest in oligarchs (8%). Owners of large enterprises are trusted by 33% and distrusted by 48%. Trust is lower among the oldest, poorest, and those not wanting to start a business.
Entrepreneurial intentions: 37% want to start a business; 14% already have one; 46% do not want to. Interest is highest among youth. Notably, one-third of affluent respondents already run a business. Preferred sectors among aspiring entrepreneurs: trade (33%), tourism (14%), entertainment/leisure (13%), food service (11%), construction/repairs (10%). 8% each: transport/logistics, beauty & health, hotels, marketing/advertising, IT, education. 4–6%: medical services, tailoring/repair, farming, auto service, real estate, household goods production.
Shopping behavior: About 50% shop in supermarkets/stores almost daily; 28% several times a week; 11% weekly; 7% less often; 3% never. Women, younger and wealthier residents shop more frequently.
– Most bought items: food (95%); household goods, drinks, and cleaning products are bought less often. Alcohol is bought less frequently; about half do not buy it at all. Cigarettes are regularly bought by 15%; 64% never buy them.
Kiosks/pavilions: 17% use them daily; 24% several times a week; 12% weekly; 23% less often; 24% never. Users are more often men, young/middle-aged, and lower/middle income. Food and drinks are the most common purchases. Cigarettes are bought more often in kiosks than in supermarkets; other goods are bought more often in stores. Since 2007, purchases of juices/water, cigarettes, and alcohol in kiosks have declined sharply (especially beer), while food, household goods, and cleaning products increased slightly.
Reasons to shop at kiosks: convenient location (71%), time savings (39%), no queues (18%), lower prices (15%), habit (10%); 7–8% cite 24/7 operation and freshness. Over time, the importance of low prices, no queues, habit, and 24/7 operation has declined. Younger buyers stress convenience; older buyers cite prices and habit.
Reasons to avoid kiosks: habit of not buying there (29%), poor storage conditions (23%), limited assortment (20%), stale goods (18%). Concerns about storage and cheating have fallen by more than half over time.
City policy toward small business: 46% believe the city authorities hinder small business development; 13% think they help; 13% say authorities do not interfere; 28% undecided. Perceived hindrance is higher among middle-aged/middle-income residents and those wanting to start a business; it is less common among current entrepreneurs.
MAFs (kiosks) conflict: 45% have heard about the conflict with city authorities. 51% oppose the mayor’s proposal to reduce the number of MAFs threefold; 41% support it (support is higher among those not wanting a business and those who never use small shops).
59% believe reducing MAFs would cost jobs and reduce city revenues; 29% think it would improve urban amenities.
62% believe the policy aims to help large retail chains crowd out small/medium traders; 20% think it aims to restore order.
58% favor mutual concessions between the city and entrepreneurs; 26% say authorities should not interfere; 9% support mass demolition. 60% side with entrepreneurs; 19% with city authorities.